3 Tips for Starting a New Music Businesses
You’ve a just announced your starting a new music venture. But, there’s more to be done to ensure you’re able to last past this time next year. How can you successfully manage your band, recording studio, or record label to ensure long-term financial sustainability?
Growth Group offers a few easy tips for starting your new music business, even if we’re not your accountants, yet.
1. Open a Bank Account for Your Music Business
To prove you’re a serious music entrepreneur, operate like one! Contact your bank and open a new checking account that you only use for music income (gigs, CD sales, and studio time) and music expenses (travel, equipment, marketing).
Using a separate account from your personal finances provides you 3 advantages:
- Legal protection (we’re not lawyers, but if your music business is sued and you use mix funds= trouble)
- Tax time tranquility (combing through your personal account to find the business stuff= stress)
- Professional appearance (do you want customers writing checks to you or your business? Think of your brand!)
Most business checking accounts are now FREE and can often be setup online if you’re using the same bank as your personal account. Here’s some additional detail about why mixing is only good for music, but not business.
2. Spend Wisely When You Start in Music
Containing your excitement is downright difficult to do when starting a new music business. There are so many options for branding, software, and gear. But, hold your horses! The money you’ve saved to get started in you music dreams will dwindle faster than expected without a detailed plan.
Your first year in music business, take it slow and learn as much as you can. Experiment with free options to start and upgrade once you’ve gained some traction. “You’ve got to spend money to make money” is only partially true, and those who make spending decisions wisely will be the ones still in business 3 years from now.
Side note: Don’t spend $1,000 on something because you want a tax deduction, that item will only save you about $200 in tax. Just pay they $200 in tax and keep the other $800 for something you really needed to grow your music business.
3. Create Consistently
Love your craft enough to dedicate time to it. Whether that involves learning a new lick or riff, attending a conference to learn about expanding to the international music market, or scouting for upcoming talent for your label or studio, is up to you. But, do something daily and you’re guaranteed to see progress.
You’ll become an “overnight success” after you’ve found yourself working overnight for your success.
What are some of the tips you’ve received for starting a new business in the music industry?